Change orders are bilateral agreements.

Change orders are bilateral agreements.

• A. True
• B. False
• C. Depends on the contract
• D. Not enough information

Answer: (A)

Change orders are bilateral agreements to modify the contract. When a change in scope, cost, or schedule is needed, both owner and contractor must negotiate and sign a change order that amends the contract terms. This ensures that neither side unilaterally alters the agreement and that all adjustments—such as new scope, price, milestones, or delivery dates—are mutually agreed and documented. Note that a construction change directive can be issued unilaterally to direct a change before agreement, but it becomes a change order only when both parties sign off on the revised terms. So, the statement that change orders are bilateral agreements is correct.

Change orders are bilateral agreements to modify the contract. When a change in scope, cost, or schedule is needed, both owner and contractor must negotiate and sign a change order that amends the contract terms. This ensures that neither side unilaterally alters the agreement and that all adjustments—such as new scope, price, milestones, or delivery dates—are mutually agreed and documented. Note that a construction change directive can be issued unilaterally to direct a change before agreement, but it becomes a change order only when both parties sign off on the revised terms. So, the statement that change orders are bilateral agreements is correct.